The Quantitative Research of the Increase of Domestic Employment and Foreign Direct Investment

This essay sets up an econometric model by employing statistics from the year 1985 to the year 2008 and makes an empirical analysis on the co-integrate relation between foreign direct investments and the number of jobs in China, hereby drawing the conclusion that there is a long-term and stable relation between foreign direct investments and the increase in employment. Furthermore, it makes an estimation of the concrete contributing rates of foreign direct investments to the increase of China domestic employment.